Stock Market Update Friday June 7, 2024

Stock Market Update Friday June 7, 2024 The unexpectedly robust Nonfarm Payroll (NFP) report, despite its potential for misinterpretation, unsurprisingly caused a sharp decline in the bond market, initially dragging down S&P 500 futures as well. However, the indices quickly rebounded, turning positive by midday. The afternoon saw a slight softening in the market, although the downside remained limited. The broader equity market, as measured by the S&P 500, remained relatively flat, closing the week with marginal gains of less than 1%, despite the volatile trading activity surrounding the GameStop phenomenon.

Away From Stocks: May's surprisingly robust employment data triggered a significant sell-off in the Treasury market, with yields on 2-year and 30-year bonds surging 15 and 12 basis points, respectively, to reach 4.87% and 4.55%. In the commodities sector, West Texas Intermediate (WTI) crude oil dipped towards $75 per barrel, while gold experienced a sharp decline of nearly 4%, settling at $2,288 per ounce.  Bitcoin also retreated, falling 2% to $69,100.  Meanwhile, the CBOE Volatility Index (VIX), a measure of market volatility, closed the trading day slightly above 12.